Posted on 12/17/2017 4:43:18 PM PST by springwater13
The Republican tax bill would cut taxes for about 75 percent of filers in 2018. How would it affect you? This chart shows how the bill would affect 220,000 real households. Answer the questions below to find the ones like yours. (The calculator covers only personal taxes. Business owners and investors could also benefit from corporate tax cuts.)
(Excerpt) Read more at nytimes.com ...
I ran several estimates, since my income is a bit variable. “Your” calculator says I save an average of $1100, depending on the exact inputs.
This closely parallels an estimate I did running a more complete “input” through a modified (for the new bill) 2017 Form 1040.
That’s not “yuge”, but I was actually willing to pay a bit more if the plan leads to excellent economic growth, and simplifies the tax code considerably. I think there is a good chance of the former, but the latter seems to be a forlorn hope...
Are there any gains on Schedule C and related forms for typical Schedule C filers? I’ve heard little on that subject...
“Too crude to get a precise number, but it states on average a $120 tax increase. Looking at our estimated taxable income for 2018, it looks to be a bit more than that, in the $400-500 range for a tax increase.”
Bend over America.
We belong to the group of retirees (over and under 65) with modest taxable income, and deductions for property taxes, medical expenses/premiums over AGI threhold, charitable contributions, etc. Some might also have some state income taxes, mortgage interest (hopefully for not too long in retirement), etc. That’s a group likely to not see any tax cut.
7500 for us!
Lots of people here have never made $110. Including me.
Yet, many of us make generous donations to FR.
Waiting on you.
They should allow all the current and new deductions and whichever way a person benefits the most, they should be able to set up their taxes that way.
I did ours from memory. Over $3k increase for us. Thanks Republicans!
Luckily the IRS won’t change the withholding tables until February, so every taxpayer will be able to immediately compare before and after tax rates (but not the changes in deductions).
$3k?! Wow, I didn't think that was possible. Worst case for us would be about a $700 tax increase, but that depends on the amount of itemizing we would have done that gets negated by the higher standard deduction.
Honestly, I wish they would have helped retirees out by raising the income threshold at which Social Security benefits get taxed. Annoying that California, New York, and Illinois don't tax SS at all and the federal government does at a certain income level.
Why that would be me too.
I understand how higher standard deduction negate itemized deductions but how does higher deductions increase your taxable income?
I’ll bet there are millions more solid middle class people like us that will be just as pissed as I am.
As a tax preparer, I am interested in what is your unique circumstances that causes your taxes to go up by 3k when most going down. It would help me to warn my clients.
Nothing unique about us. Retirement income treated as straight income. Solid middle class in California. Lots of deductions.
$760 cut for me. But its the NY Times, so I will take it with a grain of salt.
“I wonder how it affects a person who is considered self employed making less than 5k annually. No other income.”
The first thing you would do is subtract 12k From your income. If the result is not a positive number then you will pay zero in federal taxes.
Rates are going down, most deductions are retained and alt min virtually eliminated and still a 3k increase. Interesting.
I know that many with high Salt deductions also ran into alt min tax and therefore these deductions didn’t help. I also know the calculators on line do not calculate alt min. I wonder if you have alt min tax now and won’t have it in new tax.
The 5000 is subject to self employment tax, roughly 750.
People in liberal, high tax states don’t do well in this bill, especially those owning expensive homes and making more than $300k. Frankly, it’s time to move to a no state income tax state like Nevada, Texas, or Florida for these folks.
However, I do not see how typical middle class people get hurt very badly.
The standard deduction goes up to $24k. That’s a lot of deductions for people to even hit to itemize.
Tax rate in NY is 6.65%, so if you are making $100K, that’s $6,665. If you own a $300,000 home, you pay $9K in property taxes so that’s about $15k in total deductions. The limit in the bill is $10k. This hypothetical family is only losing $5k in deductions worth just $1100 at the 22% tax rate.
Mortgage interest is unaffected up to $750k.
I can see those making $300K+ and owning expensive real estate hurting, but if they have large families, each kid is worth $2k in child tax credit they couldn’t qualify before. 4 kids can be worth $8k extra.
There’s lots of variables. Families with kids that make over $110K should do well even in NY and CA under this bill.
Yes and I forgot about the Obamacare tax(if no other insurance or exemptions) that will still apply for next year. I am not sure about the rules on that. But people could potentially be paying zero in federal taxes, and yet a significant “penalty” for Obamacare.
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